At present, China's waste heat utilization ratio is rather low, with the
figure in large steel enterprises being 30%-50%. But the waste heat
utilization in other sectors is even lower. Thus, China is expected to
see a huge potential to improve its waste heat utilization.

By temperature of waste heat, the waste heat utilization equipments fall
into two categories: the first comes to waste heat boiler which uses
medium-and high-temperature waste heat; the second refers to lithium
bromide refrigerator (heat pump) and screw expander, both of which use
low-temperature waste heat. Of these, waste heat boiler occupies a
lion's share in waste heat utilization equipments. In 2012, the output
of waste heat boiler approximated 812 sets, totaling 39,788 steam tons.

According to the 12th Five-Year Plan On Energy Conservation And Emission
Reduction by the State Council, China will increase its capacity of
waste heat/pressure power generation by 20 million KW as of 2015,
expecting to save 57 million tons of coal equivalents. The release of
the planning injects new development motives for the waste heat
utilization field, leading to the development of low-temperature waste
heat utilization equipments represented by lithium bromide refrigerators
and screw expanders.

When it comes to lithium bromide absorption device, Chinese market
capacity reached RMB3.32 billion in 2012, with leading industrial
players including Yantai EBARA, the market occupancy of which realizes
27%, far above Shuangliang Group and Henan Yuanda Boiler.